Multi Vehicle Excess Protect Worked Example
Multi Vehicle Excess Protection - The Figures
How It Works
A 47 year old man has a 2008 Ford Mondeo Zetec Tdci (140), he finds a quote online with LV with a £100 compulsory excess for a premium of £612.60. If he were to add a voluntary excess of £500, then the premium reduces to £463.96, a saving of £148.64.
His wife has a 2011 Hyundai I20 and finds a policy with Hastings Direct with a £95 compulsory excess for a premium of £399.61. If she added a £500 excess, then the premium reduces to £358.62, a saving of £40.99.
Their 19 Year old daughter buys a 2017 Volkswagen Scirocco and starts looking at Insurance. The best quote she finds is with Admiral Little Box with a compulsory excess of £550 for £2474.08.
If she adds an extra voluntary excess of £500, then the price reduces to £2275.84, a saving of £198.24.
So between all three of them, they have saved £387.87
by each adding a voluntary excess of £500.
If they then take out a £1000 Multi Vehicle Excess Protect policy for £70, then between them they could have two accidents throughout the year and claim two lots of £500, to reimburse the voluntary excesses. You would expect that this would cover a typical year, in fact you would have to be unlucky to make two claims, but you could take out a £2000 Multi Vehicle Excess Protect Policy for £115 to be really on the safe side and you would still be saving £272.87.
When claiming against the Multi Vehicle Excess Protect Policy, you can decide how much to claim (subject to the Maximum excess payable). So in this instance if you take out a £2000 Excess Protect Policy. You could make a claim for £1000 against the daughters policy, which would leave £1000 left in the policy for future claims.
Remember aswell that with our Multi Vehicle policy, you can cover up to 5 vehicles, so potentially you could save even more money.
Important Note
The only issue to be aware of when increasing your excess significantly, is that you cannot claim on the excess protection policy for claims less than the excess amount on the Car Insurance policy. So for example, if you went for a really large voluntary excess of £3000 and then had an accident where the cost of the claim was going to be £2500, then you could not claim on the policy as your excess is £3000 and you would have to pay for the damage yourself. This is the implication of going too large on the voluntary excess and should be considered carefully.
This quote was sourced from Moneysupermarket on 26/12/2018.
